Where is the market headed?
Not a day goes by without a major story playing out, and today the spotlight was firmly on IT services. The American AI company Anthropic, which operates with only 2100 employees and carries a market cap of approximately 350 billion dollars, has smashed IT services companies across the world. They have launched new tools in their Claude suite that can perform tasks conventional companies have been doing for years.
It seems that many existing firms have not kept up the pace required to counter this kind of AI capability. This resulted in a massive impact on the market, with companies like Infosys and TCS losing 7 to 8% of their market cap in just one day. Approximately 2 lakh crores of market cap was washed out at the very start of the day.
Looking at the global list of damage done yesterday, Gartner, a top IT consulting company, lost 20% in a single session. Other firms like Costar, Expedia, and Omnicom also saw significant losses. A notable comparison highlights the scale of this shift: a group of Indian IT giants including TCS, Infosys, Wipro, HCL Tech, LTIM, Tech Mahindra, and Persistent represents about 28 lakh crore of market cap, whereas Anthropic alone is valued at 31 lakh crores. This one startup is bigger than all those major firms put together, despite the Indian IT sector employing 16 lakh people compared to Anthropic’s 2100. It is almost unimaginable to see the damage being inflicted by new technology.
Market Overview
The current markets remained quiet today, with the Nifty still digesting these moves at 0.19%.
Nifty Next 50
Other indices showed more movement, with Nifty Junior up 0.65%, Mid-caps up 0.6%, and Small-caps up 0.76%.
Nifty Mid and Small Cap
Bank Nifty
Nifty Bank also rose 0.33%.
GOLD
Gold is moving up at breakneck speed, returning to 1,56,000 from 1,36,000 with a 2.4% move today.
SILVER
Silver also moved up 4.75%, though it appears silver may take more time to consolidate while gold looks more aggressive.
Advance Decline Ratio
Advance-declines remained reasonably flat at 319 to 181. Interestingly, smaller micro-cap companies, especially those with an export orientation, have suddenly started to do well.
Heat Maps
The Nifty heat map shows a distinct red block in IT services, with HCL Tech, Wipro, Tech Mahindra, Infosys, and TCS all smashed down.
On the Nifty Next 50, LTIM was hit hard along with HAL and Naukri, while Divi’s Lab was down 2.5%. On the positive side, Adani continues to rise as the market assumes it has cleared previous issues. PFC and Chola Finance also performed well.
In the Nifty Next 50, only VBL and Godrej CP were down. Capital goods stocks like MotherSon, ABB, Siemens, and CG Power did extremely well, as did Chola Finance, Divis Lab, Solar Industries, and Ambuja Cements.
Mover Of The Day
The mover of the day was Avanti Feeds, a big exporter, which clocked 11.6% today and 35% over two days after a long lull.
Sectoral Overview
Sectoral trends show Nifty IT down by 5.87% following the recent mayhem. Oil and gas is emerging as a new leader this season, up 2.08%, with ONGC rising rapidly. Energy as a whole is up 2%, showing a sudden sectoral shift. CPSE rose 1.9%, and commodities, capital markets, public sector enterprise stocks, and infrastructure all gained more than one and a half percent.
Sector of the Day
Nifty IT Index
Looking specifically at the IT move, the index dropped from near 40,200 yesterday morning to a low of 35,700 today. This violent move, led by Infosys and TCS, highlights that past performance does not guarantee future results. This trend is visible across marquee names like ITC and Asian Paints, which have struggled recently despite their history.
U.S. Market
Global markets also faced a tough day. The NASDAQ was down 1.5% and the S&P 500 fell almost 1%. PayPal dropped 20%, while Intuit, Accenture, Booking Holdings, and Adobe fell between 7% and 10%. Even creative leaders like Adobe are finding it difficult to keep pace with new-age companies. Major tech players like Nvidia, Microsoft, Meta, Google, and Amazon all saw moves down, though Palantir surprisingly rose 6.8%.
Tweet Of The Day
Finally, a look at the JP Morgan 2026 Global Family Office report reveals how large wealth is currently allocated: 38% to public equities, 15% to fixed income, 7.8% in cash, 4.7% in hedge funds, 1.3% in commodities, 1% in collectibles, 0.4% in crypto, and 30.8% in private investments. The high cash component is particularly interesting; if even a small percentage of that cash moves into smaller categories like commodities or crypto, it could lead to a significant boom.
